Bureau of Internal Revenue Structure and Leadership
- Headed by Collector of Internal Revenue and Deputy Collector.
- Appointed by the Governor-General with Philippine Commission's advice and consent.
- Collector oversees enforcement and administration under Secretary of Finance and Justice supervision.
Manila City Roles
- Collector of Internal Revenue serves ex officio as city assessor and collector of Manila.
- Responsible for municipal revenue collection and duties like provincial treasurers.
Bureau Powers and Duties
- Collects all taxes, fees, charges, and enforces fines, penalties.
- Administers supervisory and police powers related to internal revenue laws.
Regulatory Powers of the Collector
- Authorized to promulgate regulations consistent with law.
- Regulations become law upon approval and publication.
Required Contents of Bureau Regulations
- Procedures for provincial treasurers' canvassing, listing taxable persons and property.
- Specifications for labels, brands on taxable goods.
- Rules on export labeling and handling of tax-exempt goods.
- Legal procedures for revenue officers.
- Record keeping for authorized holders of prohibited drugs.
- Importation, storage, and transfer of opium and other drugs.
- Bonded warehouse operations and record keeping.
- Tax-free withdrawal conditions for denatured industrial alcohol.
- Revenue collection methods, stamp handling, licensing.
- Restrictions and licensing conditions for outdoor advertising.
Bonds and Security
- Collector fixes bonds from private parties to government under internal revenue laws.
Official Forms and Supplies
- Provides licenses, cedulas, internal revenue stamps, seals for weights and measures, and other administrative forms.
Agents and Deputies
- Customs and provincial treasurers act as deputies for respective revenue collections.
- Authority to appoint special deputies for cedula collection for limited periods.
Expenses of Collection
- Provinces bear collection expenses and enforcement costs.
- Manila liable only for city-specific collection expenses.
Internal Revenue Inspection Districts
- Philippines divided into inspection districts managed by internal-revenue agents.
Internal-Revenue Agents' Duties
- Enforce internal revenue laws; detect and report fraud or delinquency.
- Power to suspend storekeepers and report issues to Collector.
Supplements to Agent Authority
- Assistants may exercise powers delegated by their principal agents.
Storekeepers and Special Duties
- Collector may assign storekeepers to bonded or manufacturers' warehouses.
- Agents may be assigned special duties outside their usual service without salary change.
Reporting Violations
- Internal revenue officers report criminal violations to provincial fiscals and the Collector.
- Must also report forestry law violations to Bureau of Forestry and Collector.
Arrest and Seizure Powers
- Certain officials empowered to arrest and seize for violations pending magistrate proceedings.
Tax Assessment Powers
- Collector may assess taxes based on best evidence if required reports are absent or unreliable.
Authority to Administer Oaths and Hear Testimony
- Allowed for official investigations related to Bureau jurisdiction.
Annual Report Requirements
- Must detail collections, disbursements, revenue sources, and expense classifications.
Sources of Internal Revenue Taxes
- Includes cedula tax, documentary tax, privilege taxes on businesses, specific manufacturing taxes, taxes on banks and insurance companies, forest products charges, weights and measures fees, income tax, and advertising taxes.
Cedula Tax Liability
- Levied on males 18 to under 60 years, with specific exemptions (military, diplomats, paupers, insane, prisoners, specific indigenous groups).
- Non-Christian tribes generally liable unless exempted by provincial board and Secretary of Interior.
Cedula Tax Rates and Payment
- Standard rate one peso, increase to two pesos allowed by resolution.
- Penalty doubles tax if delinquent.
- Payment times defined with possible extensions.
- Certificates required for official acts and may be replaced if lost.
Documentary Stamp Tax
- Levied on variety of financial and commercial documents including bonds, stocks, insurance policies, bills of exchange, property conveyances, and more.
- Specific rates vary by document type and value.
- Exemptions for government bonds, government payment instruments, cooperative insurance policies, and certain official documents.
- Stamp must be affixed and canceled correctly.
- Instruments unstamped are not admissible as evidence or record until stamped.
Privilege Taxes on Business and Occupation
- Must be paid before starting the specified business or occupation.
- Taxation on both businesses and individual occupations, assessed separately.
- Payment terms, penalties for late payment, and initiation fees outlined.
Percentage Taxes on Business
- Merchants, printers, publishers, contractors, warehousemen, carriers, and similar professions taxed on gross receipt percentages or fixed amounts.
- Exemptions provided for small retailers and producers selling directly.
Fixed Privilege Taxes by Type
- Detailed annual fixed tax amounts for various businesses (distillers, brewers, tobacco manufacturers, liquor dealers, peddlers, entertainment venues, brokers, etc.).
Definitions of Business Terms
- Clarifies terms such as distiller, brewer, rectifier, manufacturer of tobacco and cigars, different liquor dealers, peddlers, and other business categories.
Adjustments to Tax Rates
- Municipalities may increase cockpit taxes.
- Provincial boards may reduce race track taxes except for Manila.
Business Privileges and License Revocation
- Payment of taxes grants privilege to sell wholesale in original packages under defined conditions.
- Licenses revoked by Collector for abuse or public nuisance, subject to appeal to Governor-General.
Business Continuation and Relocation
- Estate continuation after death honors original tax payments.
- Business may relocate within municipality without additional tax during paid term.
Specific Taxes on Products
- Applies to manufactured goods for domestic sale and imports, excludes exported goods.
- Payment primarily by manufacturers or importers.
- Specific taxes detailed for distilled spirits, wines, fermented liquors, tobacco products, matches, opium, skimmed milk, etc.
- Conditions for tax-free denatured alcohol withdrawal for industrial use.
Tax Administration of Banks, Insurance, and Franchises
- Taxes on capital, deposits, and circulation of banks monthly.
- Semiannual payment with penalties for delinquency.
- Insurance companies taxed on premiums annually.
- Franchises taxed on gross receipts per charter.
Forest Products Charges
- Trees categorized into four groups with respective tax rates per cubic meter.
- Firewood charged differently, limited to certain timber groups.
- Charges also on gums, resins, and unregistered private lands with penalties for illegal cutting and removal.
- Miners granted half-price timber charges for mining claim development.
- Charges payable upon removal, with possible bond security for shipments.
Fees for Testing and Sealing Weights and Measures
- Graduated fees based on size and capacity for both metric and English units.
- Includes free testing and sealing for government instruments.
Tax on Signs, Signboards, and Billboards
- License required before erecting or displaying outdoor advertising.
- Annual tax by surface area and sign type.
- Enforcement includes removal of offensive or unlicensed signs and penalties.
Registration and Identification Requirements
- Businesses must register names and locations.
- Distillers, rectifiers, and tobacco manufacturers must display signs with identification.
- Certificates of tax payment must be displayed at business premises.
Supervision of Manufacturers and Dealers
- Bureau supervises production processes for sanitary and revenue safeguards.
- Mandatory recordkeeping for manufacturers and dealers.
- Premises must receive prior Commissioner approval.
- Specific packaging and labeling standards required.
- Tax-paid articles cannot remain stored at manufacturing premises.
- Exporters must provide proof or bond.
- Bonds required from manufacturers and importers to secure tax liabilities.
Enforcement Authority and Procedure
- Officers may inspect premises and detain packages suspected of tax evasion.
- Prescribed procedures for removal and storage of taxable goods, denaturing alcohol, rectification processes.
- Powers to administer oaths, summon witnesses, and take testimony.
Prohibited Drugs Regulation
- Defines prohibited drugs including opium and derivatives.
- Permitted possession and use limited to licensed medical/veterinary professionals and authorized government officials.
- Importation and storage of opium regulated, including marking before removal.
- Pharmacists and medical professionals must keep detailed records subject to inspection.
Remedies and Judicial Procedures
- No court injunctions to restrain tax collection.
- Taxpayers may pay under protest and seek recovery through administrative and judicial proceedings.
- Right to contest seizure and forfeiture of property.
- Legal actions must be brought in the Government’s name with Collector’s approval.
- Collector authorized to compromise cases, refund illegal taxes and stamps.
- Judgment against officers defended by Collector unless bad faith or negligence.
- Enforcement remedies include civil and criminal actions and specific procedures for forfeiture and sale.
Tax Lien and Collection
- Taxes constitute a lien superior to most claims on property.
- Remedies include distraint on personal property, levy on real estate, and legal action.
- Detailed distraint and sale procedures with buyer protections and possibility of Government purchase.
- Real estate sales conducted with notice, proceeds accounted for.
Penal Provisions for Officers and Employees
- Penalties for extortion, willful neglect, collusion, false entries, failure to report violations, and illegal demands.
- Rewards for informers.
- Penalties for unlawful divulgenc